In this project we have researched and covered all five aspects of marketing research i.e. Identify
Distribution Channel, Structure of Channel partners their margins, commissions, Physical
Distribution Management, Communication/ Information flow, Supply Chain Management.
Besides this we have interviewed MrSANDESH P. TALEKAR employee of Cadbury India.
In the project we have covered about facts associated like Structure of Cadbury, Logistics and
supply chain of Cadbury, Supply chain management, channel participants, the channel structure,
Physical distribution, Designing & setting up channel, Warehousing, Information flow regarding
inventory data, Information flow regarding payments data, Information flow regarding sales data,
Five primary processes of supply chain management, Demand Management and finally coming
towards the conclusions of the project.
3. Table of Contents
1) Name & Address of the company
2) Business unit‟s contact person‟s name & Mobile no.
3) Analysis of the observations
4) Identify Distribution Channel
5) Structure of Channel partners their margins, commissions
6) Physical Distribution Management
7) Communication/ Information flow
8) Supply Chain Management
4. Name & Address of the company
19, Bhulabhai Desai Road,
Business unit’s contact person’s name & Mobile no.
SANDESH P. TALEKAR
6, SHANTI NIWAS, SHASTRI NAGAR
E-MAIL ID: -email@example.com
TEL NO:- 9892315030
Analysis of the observations
Our analysis to this project is Cadbury stand way up as comparative to other similar product.
Company have done extreme hard work and yet marketing style stands one of the best in the
marketing world. Distributions Channel is the key to cover the market. Structures of Channel
partners are really well managed and this is where the key area of the successions of Cadbury lies.
Physical distributions management makes the company to cover the whole market perfectly. And
Finally Communications and information flow makes topping of the cake!! As this part plays a
vital role in overall succession of the company as company communications and information
remains confidential and yet open ended.
Identify Distribution Channel
It is a chain of intermediaries through which a product moves in order to be made available for
purchase by a consumer. An indirect channel of distribution involves a product that passes
through additional steps as it moves from the manufacturing business via distributors to
wholesalers and then retail stores.
Direct selling is the sale of a consumer product or service person-to-person away from a fixed
retail location. Direct selling is a marketing channel that goes directly to consumers‟ homes,
offices or other locations. It is concerned with the sale of consumer products in consumer markets
rather than industrial products in industrial markets, which is referred to as business-to-business
marketing. It also involves salespeople meeting face to face with customers.
Structure of Cadbury:Manufacturer
Product Form:Cadbury products are available in packaged form. For e.g.:- In the form of bars, nuts, toffees etc.
Logistics and supply chain of Cadbury:Logistics:- Logistics refers to as planning, implementing and controlling the physical flow of
materials and final goods from the point of origin to the ultimate consumer.
Supply chain management:- Supply chain management is the management of a network of all
business processes and activities involving procurement of raw materials, manufacturing and
distribution management of Finished Goods. It is also called the art of management of providing
the Right Product, At the Right Time, Right Place and at the Right Cost to the Customer.
The goods from the place of raw material to the place for its end consumptions include logistics
and supply chain in distribution system. The inventory is kept at depots and is supplied from the
distributor when he receives a call for it. The company has also begun using the railways. “We use
trains as an alternate mode of transport whenever it is more cost effective than road transport.
While transporting to longer distances distributor makes sure every truck is fully loaded.
6. Consequently, the inventory uptake for each truck rose four percentage points to 96% in January.
This has lowered its overall transportation costs by 4%. Transportation constitutes about 30% of
the total logistics costs for an FMCG company in India.
Structure of Channel partners their margins, commissions
Q. How are the product/ service marketed?
Ans. It is marketed through
Advertising-Television and Radio, Newspaper and Magazines, Billboards and Internet
Sales promotion-Discount, Free Samples, Special stand in a shop
Q. Who are the channel participants and the channel structure?
Ans.The channel participants are Producer, wholesaler, retailer and consumers. The channel
structure as follows company gives the possession to the Warehousing Clearing and forwarding
Agent then goes to the Distributor he gives it to the Retailer or dealer finally it goes to the
Q. How is the channel managed?Ans.The channel is managed through Extensive distribution network. Cadbury‟s brands are
available in over a million markets across the country. The company uses information technology
to improve its logistics and distribution competitiveness. Cadbury has improved the distribution
quality of its products with the installation of refrigerators at several outlets.
Q. How are channel conflicts if any resolved?
Ans. Basically channel conflicts are solved by Avoidance, Accommodate, compromise and
What are the various pricing strategies?
Ans. Various pricing strategies are Mark-up pricing, Penetration, Skimming and EDLP
Physical Distribution Management
Physical distribution is the set of activities concerned with efficient movement of finished goods
from the end of the production operation to the consumer. Physical distribution takes place within
numerous wholesaling and retailing distribution channels, and includes such important decision
areas as customer service, inventory control, materials handling, protective packaging, order
procession, transportation, warehouse site selection, and warehousing. Physical distribution is part
of a larger process called "distribution," which includes wholesale and retail marketing, as well
the physical movement of products.
Designing & setting up channel
Most producers use intermediaries to bring their products to market. They try to develop a
distribution channel (marketing channel) to do this. A distribution channel is a set of
interdependent organizations that help make a product available for use or consumption by the
consumer or business user. Channel intermediaries are firms or individuals such as wholesalers,
agents, brokers, or retailers who help move a product from the producer to the consumer or
A company‟s channel decisions directly affect every other marketing decision. Place decisions,
for example, affect pricing. Marketers that distribute products through mass merchandisers such
as Wal-Mart will have different pricing objectives and strategies than will those that sell to
specialty stores. Distribution decisions can sometimes give a product a distinct position in the
market. The choice of retailers and other intermediaries is strongly tied to the product itself.
Manufacturers select mass merchandisers to sell mid-price-range products while they distribute
top-of-the-line products through high-end department and specialty stores. The firm‟s sales force
and communications decisions depend on how much persuasion, training, motivation, and support
its channel partners need. Whether a company develops or acquires certain new products may
depend on how well those products fit the capabilities of its channel members.
Some companies pay too little attention to their distribution channels. Others, such as FedEx, Dell
Computer, and Charles Schwab have used imaginative distribution systems to gain a competitive
Small business owners who require warehousing facilities must decide whether to maintain their
own strategically located depot(s), or resort to holding their goods in public warehouses. And
those entrepreneurs who go with non-public warehousing must further decide between storage or
distribution facilities. A storage warehouse holds products for moderate to long-term periods in an
attempt to balance supply and demand for producers and purchasers. They are most often used by
small businesses whose products' supply and demand are seasonal. On the other hand, a
distribution warehouse assembles and redistributes products quickly, keeping them on the move as
much as possible. Many distribution warehouses physically store goods for fewer than 24 hours
before shipping them on to customers.
8. CF agent is the carrying and forwarding agent. The Manufacturer will have the contact only with
the CF, they are the one who gives the products to the wholesaler from there it reaches to retailer
and then to customer. For one state there will be only one CF agent. Yes, there is CF agent in an
Logistics plays a vital role in economic systems and in everyday life. Given the
Significant cut back in manufacturing and labour costs, reducing logistics costs has
Become an increasingly important task for managers. On account of the complex supply
Chains and globalization, the cost of logistics operations could comprise as much as half
The value of general commodities. However, technological development offers new cost cutting
Global logistics costs in the year 2002 were estimated at USD 6,732 billion, and corresponded to
13.8 per cent of the world‟s GDP in 2002. The level of logistics costs is heavily dependent on the
industry, but in general tends to be high in logistics-intensive operations such as food, metal,
chemical and paper manufacturing.
The importance of lowering logistics costs has also been acknowledged on national,
Regional and global levels. These costs are significant and affect the competitiveness of
Nations, as well as national-level policymaking, infrastructure development and other
Distribution costs (also known as “Distribution Expenses”) are usually defined as the costs
incurred to deliver the product from the production unit to the end user. It is a broad terminology
and it includes several costs. Some of the costs are discussed below. If the shipper is a distributor
and it further sells to the retailer and the retailer sells to the end user then all the separate
distribution costs at each stage would be included in the total distribution cost. Moreover, in some
cases the manufacturer has a production unit at one place and the “product pick up place” by the
forwarder at another place. The cost of moving the product from the place of production to the
pickup point is also included in distribution cost.
Debtor Controlreflects the total amount owed by the all the individual debtors. The balance of
the debtors control account must equal the total of the debtors list, which represents the amounts
owed by the individual debtors obtained from the individual balances in the various subsidiary
ledger accounts for each debtor.
Reducing the cost of debtors
Send invoices promptly
Send statements monthly
Phone the client
Send a reminder letter
Communication/ Information flow
Information flow regarding inventory data :- Inventory flow management system provides
framework for achieving goals of top-line management. Cadbury is going through FMCG
revolution, also poses a big challenge to organized large FMCG companies particularly in this
sector. A well-managed inventory ensures that customers receive the products when they need
them, in the quantities they need, and with the uniform high quality they expect. In this research
paper, we have discussed the ways to manage the flow of inventory through the manufacturing
and distribution system. Globalization, integration of the world economy and the concept of
extended enterprise has led to an increasingly important role played by the entire inventory
management system. The most important thing to an owner of business is to provide a quality
product and service to the customers with effective utilization of Inventory flow management
system. Inventory flow management allows the organizations to match the inventory levels to the
customer demand, while meeting the other objectives such as capacity, productivity, and
profitability. In a competitive business environment, inventory flow is therefore a critical part of
Information flow regarding sales data :- The information flow regarding sales data remains
within the company and minimize sales data is been shared from top end to bottom end whereas
on the other side i.e. from bottom end to top end a very hard-core data is been shared which
includes most preferred usage age of the product, most favourable time of purchase of product
(i.e. festival, culture, monsoon, etc.), most wanted product of its own and also in its competitive
product,etc. Hence, all these research of company helps in growth of its sales and at same time it
helps in maintaining the information sales data.
Information flow regarding payments data :- The information flow regarding payments data is
unauthorised, Hence during the research we have analyse the complete data and had interviewed
local Mom & pop store owner, where we come to known that information payment data remains
very much straight forward, where maximum information is shared between Manufacture and
Distributor and then on Integrating applications on different
Platforms into a business process&Documentation processes in procedure manuals in order to
minimise the payment process, so in order for reacting quickly to business change whenever and
Supply Chain Management
10. Cadbury comesunder the FMCG Sector. In FMCG Sector, the performance ofthe supply chain is
a key factor.The supply chain encompasses all activities involved in the transformation of
goods from the raw material stage to the final stage , when the goods and services reach the
end customer. Supply chain management involves planning , design and flow of control of
material , information and finance along the supply chain to deliver value to the end
customer in an effective and efficient manner. Supply chain is the frontier of competition.
Supply Chain Management is the management of the network that links customers and
suppliers as one „single entity‟ with the objectives to create value and reduce waste
through the voluntary integration. In supply chain management of FMCG sector multiple
entities are involved at each stage , a manufacturer receives material from several suppliers
and in turn distributes the product through multiple distributors.
Five primary processes of supply chain management are :Inbound logistics
Sales and Marketing
In supply chain demand planning is a critical business process that impacts FMCGcompanies‟
ability to manage their value chain business performance. Demand management havethe greatest
impact when it is applied to predictably variable products.
The reason for measuring demand planningaccuracy is that, it is a building block of demand
There are two methods of demand planning :Changing demand based forecast
Adding Imp actors
The demand planning processconsists of two components :Baseline or base demand
Activities and circumstances.
11. Demand planning accuracy (DPA) needs to be measure and report on a regular and
continuous time basis. Speed ofprocesses for complaints regarding supplies. The speed of
processes for complaints can be sometimes slow regarding supplies because there are multiple
entities which are involved in each stage like in automobile sector. Whereas it can be good when
there is less number of entities like in dairy products.
From the above project we come to an conclusion that Cadbury stand way up as comparative to
other similar product. Company have done extreme hard work and yet marketing style stands one
of the best in the marketing world. Distributions Channel is the key to cover the market.
Structures of Channel partners are really well managed and this is where the key area of the
successions of Cadbury lies. Physical distributions management makes the company to cover the
whole market perfectly. And Finally Communications and information flow makes topping of the
cake!! As this part plays a vital role in overall succession of the company as company
communications and information remains confidential and yet open ended. Hence the company
stands the best in every term and prospectus of its product and marketing strategy and overall
market grip in the market.
Interview with Mr. SANDESH P. TALEKAR employee of Cadbury India.
Marketing Channels - Bert Rosenbloom, 7e India Edition CENGAGE Learning
Sales Management – Tanner Honeycutt Erffmeyer Seventh Edition Pearson Publication
Sales and Distribution Management Text and Cases- Krishna K Havaldar, V M
CavaleMcGraw Hill Publication
5) Marketing Channels – Coughlan Anderson Seventh Edition Pearson Publication
6) Rural Marketing - PradeepKashyap& Siddhartha Rautbiztantra Publication dreamtech
7) Sales and Distribution Management - Tapan Panda